Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

Delta Electronics Thailand  / Equity Bottom-Up

<ul><li>We switch to a Neutral rating (previously Underperform) as the tactical outlook has improved to very limited downside risk, compared to the previous view of limited upside risk.</li><li>The stock price remains stretched compared to the fair value of Bt112.00, based on a required return of 1.7%.</li><li>Meanwhile, EPS growth is projected at a CAGR of 10.8% during 2025-27E, in line with the industry average.</li></ul>

We switch to a Neutral rating (previously Underperform) as the tactical outlook has improved to very limited downside risk, compared to the previous view of limited upside risk.The stock price remains stretched compared to the fair value of Bt112.00, based on a required return of 1.7%.Meanwhile, EPS growth is projected at a CAGR of 10.8% during 2025-27E, in line with the industry average.

Delta Electronics (Thailand) - 4Q24 Net Profit Significantly Below Expectations

Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

<ul>
<li>Delta Thailand Weakness Amid Block Trade and Convertible Bond News</li>
<li>Delta Taiwan Offering Convertible Bonds, Convertible into Delta Thailand Shares</li>
<li>Delta Thailand Still Overvalued Relative to Delta Taiwan -- Short Delta Thailand vs. Long Delta Taiwan</li>
</ul>


Delta Thailand Weakness Amid Block Trade and Convertible Bond News
Delta Taiwan Offering Convertible Bonds, Convertible into Delta Thailand Shares
Delta Thailand Still Overvalued Relative to Delta Taiwan -- Short Delta Thailand vs. Long Delta Taiwan


Delta Taiwan Vs. Thailand Monitor: Convertible Sale; Delta Thailand Should Underperform Vs Parent Co

<ul><li>Delta International Holding Limited (DIH), a subsidiary of Delta Electronics (Taiwan) and a 14.7% shareholder in DELTA, plans to issue zero-coupon exchangeable bonds worth USD525mn to enhance working capital and support future expansion.</li><li>The bonds have a maturity date in 2030 and can be converted into DELTA shares at an initial price of Bt187.6/share (calculated at the reference price plus 40%, implying a reference price of Bt134), which may be subject to adjustment according to the terms and conditions of the bonds.</li><li>The aforementioned transaction regarding the issuance of bonds by DIH has no effect on DELTA's current policies or business operations.</li></ul>

Delta International Holding Limited (DIH), a subsidiary of Delta Electronics (Taiwan) and a 14.7% shareholder in DELTA, plans to issue zero-coupon exchangeable bonds worth USD525mn to enhance working capital and support future expansion.The bonds have a maturity date in 2030 and can be converted into DELTA shares at an initial price of Bt187.6/share (calculated at the reference price plus 40%, implying a reference price of Bt134), which may be subject to adjustment according to the terms and conditions of the bonds.The aforementioned transaction regarding the issuance of bonds by DIH has no effect on DELTA's current policies or business operations.

DELTA TB - Shareholders (DIH) Issued Convertible Bonds Exchangeable for DELTA Shares

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

Delta Electronics Thailand  / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/delta-electronics-thai-pcl" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics Thai (DELTA TB)</a> has been added to the Market Surveillance Measure List twice in the last few months. That increases the probability of index deletion in December.</li>
<li>Given the big turnover every time <a href="https://www.smartkarma.com/entities/delta-electronics-thai-pcl" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics</a> is added to and deleted from the index, there could be another go at weighting the <a href="https://www.smartkarma.com/entities/stock-exchange-of-thailand-set-50-index" target="_blank" data-smartkarma-citation="entities:31493:1" rel="noopener">SET50 Index</a> by free-float market cap.</li>
<li>Deletion from the index will have a big impact on <a href="https://www.smartkarma.com/entities/delta-electronics-thai-pcl" target="_blank" data-smartkarma-citation="entities:20912:1" rel="noopener">Delta Electronics Thai (DELTA TB)</a> and the passive selling could help narrow the gap with <a href="https://www.smartkarma.com/entities/delta-electronics-inc" target="_blank" data-smartkarma-citation="entities:12688:1" rel="noopener">Delta Electronics (2308 TT)</a>.</li>
</ul>



Delta Electronics Thai (DELTA TB) has been added to the Market Surveillance Measure List twice in the last few months. That increases the probability of index deletion in December.
Given the big turnover every time Delta Electronics is added to and deleted from the index, there could be another go at weighting the SET50 Index by free-float market cap.
Deletion from the index will have a big impact on Delta Electronics Thai (DELTA TB) and the passive selling could help narrow the gap with Delta Electronics (2308 TT).


Delta Electronics (DELTA TB): Potential SET50 Index Delete in December?

<ul>
<li>The valuation divergence between Delta Electronics Thai (DELTA TB) and its parent Delta Electronics (2308 TT) has hit a new extreme.</li>
<li>Delta Thailand surged 9.3% Thursday on no news, even prompting the Thailand Stock Exchange to query the company.</li>
<li>Delta Taiwan's stake in Delta Thailand is now worth more than all of Delta Taiwan. The valuation divergence would seem unsustainable, however when things revert is uncertain.</li>
</ul>


The valuation divergence between Delta Electronics Thai (DELTA TB) and its parent Delta Electronics (2308 TT) has hit a new extreme.
Delta Thailand surged 9.3% Thursday on no news, even prompting the Thailand Stock Exchange to query the company.
Delta Taiwan's stake in Delta Thailand is now worth more than all of Delta Taiwan. The valuation divergence would seem unsustainable, however when things revert is uncertain.


Delta Taiwan Vs. Thailand Monitor: Valuation Divergence Hits a New Extreme

Thailand

Delta Electronics (Thailand) PCL designs and manufactures electronic equipment. The Company produces power systems for telecommunications, medical equipment, and industrial automation.  Delta also produces fans, electromagnetic interference filters, and solenoids.

Price Gauge
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Delta Electronics Thailand (DELTA TB)

Delta Electronics (Thailand) - 4Q24 Net Profit Significantly Below Expectations

We switch to a Neutral rating (previously Underperform) as the tactical outlook has improved to very limited downside risk, compared to the...

Krungthai XSpring

Delta Taiwan Vs. Thailand Monitor: Convertible Sale; Delta Thailand Should Underperform Vs Parent Co

Delta Thailand's weakness and overvaluation compared to Delta Taiwan prompts a short on Delta Thailand and long on Delta Taiwan strategy.

Vincent Fernando, CFA

DELTA TB - Shareholders (DIH) Issued Convertible Bonds Exchangeable for DELTA Shares

Delta International Holding Limited (DIH), a subsidiary of Delta Electronics (Taiwan) and a 14.7% shareholder in DELTA, plans to issue zero-coupon...

Krungthai XSpring

Delta Electronics (DELTA TB): Potential SET50 Index Delete in December?

DELTA TB has been added to the Market Surveillance Measure List and this increases the probability of SET50 deletion in December. That could help...

Brian Freitas

Delta Taiwan Vs. Thailand Monitor: Valuation Divergence Hits a New Extreme

Delta Taiwan's stake in Delta Thailand is now worth more than all of Delta Taiwan. The valuation divergence would seem unsustainable, however when...

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Delta Electronics (Thailand) - 4Q24 Net Profit Significantly Below Expectations

We switch to a Neutral rating (previously Underperform) as the tactical outlook has improved to very limited downside risk, compared to the...

Krungthai XSpring

Delta Taiwan Vs. Thailand Monitor: Convertible Sale; Delta Thailand Should Underperform Vs Parent Co

​Delta Thailand's weakness and overvaluation compared to Delta Taiwan prompts a short on Delta Thailand and long on Delta Taiwan strategy.

Vincent Fernando, CFA

DELTA TB - Shareholders (DIH) Issued Convertible Bonds Exchangeable for DELTA Shares

Delta International Holding Limited (DIH), a subsidiary of Delta Electronics (Taiwan) and a 14.7% shareholder in DELTA, plans to issue zero-coupon...

Krungthai XSpring

Delta Electronics (DELTA TB): Potential SET50 Index Delete in December?

DELTA TB has been added to the Market Surveillance Measure List and this increases the probability of SET50 deletion in December. That could help...

Brian Freitas

Delta Taiwan Vs. Thailand Monitor: Valuation Divergence Hits a New Extreme

Delta Taiwan's stake in Delta Thailand is now worth more than all of Delta Taiwan. The valuation divergence would seem unsustainable, however when...

Vincent Fernando, CFA

Delta Thailand's weakness and overvaluation compared to Delta Taiwan prompts a short on Delta Thailand and long on Delta Taiwan strategy.